The name Corner House Ice Cream has become synonymous with quality and memories for a large number of people in India. From its humble beginning in the central business district of Bangalore, this has become a famous brand in the sale of ice cream. Since temperatures are high and everyone is looking for a cold sweet treat to cool off, then this is the right time to look at the Corner House franchise as a good business venture. In this 2024 complete guide, you will find all the crucial information you ought to know about Investment costs, Profit Margin, plus much more to consider, before establishing your own Corner House Ice Cream franchise.
Table of Contents
About Corner House Ice Cream
Sweta and Dheeraj have said that Corner House Ice Cream’s journey started in the garden city of Bangalore. The brand has a deep heritage, associated with the early days of Bangalore and the time people used to have bougainvillea and rain trees by the roadside. This is an aspect that Corner House has been able to capture so well in recreating the feel of this bygone age, at the same time transforming it into an ice cream parlor for the post-modernist era.
Established by Mr. A Narayan Rao this brand strives and struggles much, and faces revenues and other types of losses. But still, its focus on quality and customer has made it stand firm in the market and people still relish this name in the ice cream market. Since its reopening in 1996, Corner House has remained on the right side of the hearts of ice cream lovers owing to its well-prepared recipes and rather pocket-friendly prices.
Key Details of the Corner House Franchise
- Brand Name: Corner House Ice Cream
- Industry: Ice Cream
- Number of Outlets: Over 50
- Franchise Cost: Approximately ₹25-₹35 lakhs
- Profit Margin: Estimated at around 25-30%
- Space Required: 300 to 600 square feet
- Franchise Agreement: 5 years
- Official Website: cornerhouseicecream.com
Corner House Franchise: Basic Information
Unique Ice Cream Varieties: Ice creams; Corner House has a classical offer of ice cream flavors, additional seasonal production, and occasional creations. Their desserts include delicious ice cream cakes and other products which are created depending on the customers’ preferences.
Raw Material Supply: Through the centrally coordinated supply chain, the brand guarantees a consistent availability of good quality material. It is useful in ensuring that the quality of products offered in different outlets is standardized, which is important as far as the image of the brand is concerned.
Employee Training: Training is one of the most vital areas within any franchise system and all franchisees and their personnel are fully trained by Corner House. This training ranges from how to prepare the ice cream to how to treat the customers as well as how to manage the outlet so as to ensure that every outlet franchised carries the brand with pride.
Cost-Effective Model: The analyzed franchises of Corner House also have their operational advantages. The mentioned processes are made as simple as can be and there are no issues with employing exclusive chefs which contributes to controlling costs.
No Royalty Fees: Another important benefit that can boast the Corner House franchise does not require royalty payments. Franchisees get to keep full profits with no deductions making the channel attractive to more franchisees.
How Much Does Corner House Franchise Cost?
Some upfront charges are incurred when joining the Corner House Ice Cream franchise. Here is a detailed breakdown:
1. Franchise Fee: The franchise fee that is required is nearly ₹5 lakhs plus the GST. This fee makes provision for the use of the brand name and secret recipes and the one-time training of the clients.
2. Setup Cost: Opening the outlet, furniture, fittings, interior and exterior may take anything between ₹ 12 lakhs to ₹ 18 lakhs. This is so with furniture, decor, and equipment.
3. Initial Stock: The first consignment of ice creams and other raw materials required are expected to cost between ₹4 lakhs & ₹6 lakhs. This establishes a first stock that is to enable the franchise to commence operation when it is launched.
4. Shop Deposit: Initially, an interest-free security deposit of ₹2 lakhs to ₹4 lakhs is to be paid depending upon the package. The amount varies according to the place the shop is located and the size of the shop.
5. Marketing Fee: For the purpose of marketing the franchise and getting more consumers, a marketing fee of ₹1. 5 lakhs is required. A portion of this sum is earmarked for advertising and promotion.
Summary of Costs
| Expense | Cost |
| Franchise Fee | ₹5 lakhs + GST |
| Setup Cost | ₹12 to ₹18 lakhs |
| Initial Stock | ₹4 to ₹6 lakhs |
| Shop Deposit | ₹2 to ₹4 lakhs |
| Marketing Fee | ₹1.5 lakhs |
| Working Capital | ₹3 to ₹4 lakhs |
| Total Investment | ₹27.5 to ₹38.5 lakhs |
Profitability of the Corner House Franchise
- Monthly Revenue: A Corner House franchise can generate monthly revenues ranging from ₹10 lakhs to ₹15 lakhs, depending on factors such as location and foot traffic.
- Gross Profit Margin: The gross profit margin for ice cream sales is approximately 35%. This margin reflects the profitability of each sale before accounting for operating expenses.
- Net Profit Margin: After deducting operating costs, including wages, rent, and utilities, the net profit margin is around 25% to 30%.
- Monthly Earnings: With a net profit margin of 25% to 30%, the expected monthly net earnings for a Corner House franchise would be between ₹2.5 lakhs and ₹4.5 lakhs.
- Return on Investment: The return on investment (ROI) for a Corner House franchise is estimated to be between 15 and 24 months. This relatively short ROI period indicates a potentially lucrative investment.
Summary of Revenue and Profit
| Metric | Amount |
| Revenue Per Month | ₹10 to ₹15 lakhs |
| Gross Profit Margin | 35% |
| Net Profit Margin | 25% to 30% |
| Profit per Month | ₹2.5 to ₹4.5 lakhs |
| Return on Investment | 15 to 24 months |
Requirements for Opening a Corner House Franchise
- Age and Education: Basic education qualifications are required and applicants must be at least 21 years of age.
- Financial Stability: According to the evidence, to obtain targeted customers whether new or existing, and achieve a minimum sales revenue of ₹27 lakhs, a minimum investment has to be made. 5 lakhs to ₹38 lakhs. The start-up capital of 5 lakhs is needed for initial and recurring costs.
- Business Experience: Franchisees do not need any business experience since Corner House invests its time and money into training franchisees and their employees.
- Required Space: The basic requirement is a space of 300 to 600 sq feet which would be equipped with a counter, a small kitchen, and a billing counter.
- Location: Desirable locations are markets, shopping centers, the streets with a great deal of traffic, schools and colleges, and bus and train stations.
- Required Staff: This type of franchisee operation needs about 3 to 5 people in each outlet and these people will be subjected to training by Corner House.
Required Documents
To apply for a Corner House franchise, you need to provide the following documents:
- Franchise Application Form
- Business Plan
- Identification Proof
- Address Proof
- Legal Documentation
- Franchise Agreement
- GST Registration
- Shop Act and Trade Licence
- FSSAI License
- Trade License
How to Apply for a Corner House Franchise?
1. Visit the Official Website: Click on this link Corner House allowing the franchisees to access franchise information and the application form.
2. Download the Application Form: On the Secure Franchise Application form, provide your information.
3. Submit Required Documents: Forward the printout of the above-completed application with the documents required.
Pros and cons of purchasing Franchise Plane of Corner House
Pros
- Established Brand: Corner House is a popular name in the ice cream market and has been popular with its products.
- Variety: The brand deals with different types of ice cream flavors and desserts for its customers in its outlet.
- Consistency: Corner House sets up guidelines that it uses in quality assurance procedures, and this serves to make all outlets equal.
- No Royalty Fees: From not having to expose themselves to periodic royalty charges for instance, franchisees stand to gain all the benefits of profits accrued.
- Training and Support: By the provision of adequate trainings and support services to the franchisees, Corner House makes the operation successful.
Cons
- Competition: Competition mainly lies within the ice cream industry which can pose a threat to the sales of the ice cream.
- Initial Investment: One of the disadvantages of franchises is that the initial investment that is required to set up the franchise may be very high.
- Location Dependent: The kind of traffic area the franchise is placed in generates lots of traffic for it because it is a food franchise.
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Conclusion
In Conclusion, Corner House Franchise Cost, Profit and How to Start in 2024. Presenting the Corner House Ice Cream franchise, it becomes obvious that it is one of the most lucrative opportunities for those who seek to be engaged in the highly-developed ice cream industry. This franchise plan for Corner House benefits from a strong brand image, the high diversification of products, and a highly supportive franchise environment. Although the initial cost of investment is a little on the higher side, the probability of generating good revenue and no questions-asked royalty charges make up for it. Considering the factors including the location, competition, investment, and costs, it would be possible for a person to make a sound decision to start a successful project with Corner House Ice Cream.
FAQ
How much cost is required to start a Corner House franchise?
The cost of a Corner House franchise is between ₹ 27. 5 lakhs and ₹ 38. 5 lakhs inclusive of franchise cost and franchise setup or architectural modification cost, inventories, advertising and promotion, and preliminary working capital.
Is the Corner House franchise business currently profitable?
Yes, the Corner House franchise is a profitable business that has a possibility to earn ₹10 to ₹15 lakhs per month and the net profit is between 25 to 30 percent. The payback on the investment is said to be between 12 and 18 months on average.
What are the necessary steps necessary for the establishment of a Corner House franchise?
These are age, a minimum investment of ₹27. 5 lakhs to ₹38. 5 lakhs and documents required which include being at least 21 years of age. As for the training, the participants of the programme are not expected to possess any prior business experience.
